Rumor on Lehman Brother's capital raising caused another round of panic on
financial sector and heavy interest of shorts. In reality the Lehman raise
will likely conclude the process of its necessary capital raises. Lehman's
short-term profit problem stems from it being short the ABX and CMBS indices
as a hedge against its business book. Both indexes are forward-looking and
their risings are actually positive development.
S&P downgraded a couple of investment banks on Monday. The sector now
repr
